The BOC left the interest unchanged at 0.50%. This was no surprise. In the accompanying statement, the team in Ottawa expressed worries. There still is slack in the economy, as reflected by stagnating wages, low core inflation, and challenges to exports. They do acknowledge stronger job growth but see the rise in energy prices as temporary. There is nothing significant regarding the value of the C$.
USD/CAD bounces back from the lows and hits a high of 1.3347. Resistance awaits at 1.3380 and 1.3460. Support is at 1.3280.
The Bank of Canada made its March decision. No change was expected by the team led by Stephen Poloz.
USD/CAD was sliding ahead of the publication, trading around 1.3300, towards the lower end of the day’s range.
The loonie was trading lower during the week, as oil prices could not reach higher ground. WTI flirted with the $55 level but retreated quickly.
The US dollar has been on the rise thanks to Bill Dudley. While Trump’s speech was a dud (at least not a disaster), the dollar driver came from Dudley’s “compelling case for a rate hike”. The chances of a rate hike in a fortnight, on March 15th, have risen sharply.
More: CAD: BoC To Remain Balanced – Credit Agricole
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